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Who Do You Call When the Wall Caves In?

Hiring a Contractor Is Not as Easy as it Looks

Maybe your house wasn't directly under the storm, but the wind blew a tree onto your roof. Or maybe it was hurt by hail or caught fire or one of the water pipes burst inside the house.

Chances are, you're going to need a contractor. If so, two experts from Texas AgriLife Extension Service offer some advice.

First, consider the circumstances, said Janie Harris, AgriLife Extension housing and environment specialist.

"Hiring a contractor is a little more difficult after a disaster," she said, "because a lot of the local people (contractors) are going to be overwhelmed with calls. Ideally, you want to get more than one estimate."

After a disaster, property owners first must do whatever is necessary to protect their homes from further damage, she said. Then contact the insurance company, take pictures of the damage, make a list of everything destroyed or damaged, and begin getting in touch with contractors.

"It's best to use local people so you can get personal recommendations," Harris said. "If you're recovering from a disaster, there likely will be contractors coming into the area who are well qualified but you don't know who they are. (In that case) ask for their driver's license and business card so you can check where they're from and can contact the Better Business Bureau in that area to see if they have any complaints against them."

Dr. Joyce Cavanagh, AgriLife Extension family economics specialist, also recommends asking to see their contractor's license.

"Write down the license numbers, address and vehicle license plate number," she said. "Contact the Better Business Bureau located in the person's home community or check online at http://www.bbb.org. Call your local Better Business Bureau if you need assistance."

And don't just ask to see the contractor's license for the company, Harris added. Also ask to see the license for the person doing the actual work.

"Also ask for proof of general liability insurance and workman's comp insurance," she said.

Make sure the contractor is licensed to do the necessary work, Harris said. For example, mold remediation requires special training and licensing by the Texas Department of State Health Services.

If you need this kind of cleanup done, "ask to see a copy of their business license, including the licenses of the people doing the work," she said. "Ask where they got their training and what they are going to do to clean up (your property)."

Some contractors may want to use industrial-strength chemicals, Harris said. This type of chemical is not recommended for use in residences of those with respiratory conditions or in homes where young children or elderly people live, she said.

Besides, she added, often chemicals that strong won't do the job any better than a bleach-and-water solution. After a disaster, out-of-town contractors may flock to the stricken area, Harris said. Some will be legitimate business people; some will not. If a contractor claims to be certified by the Federal Emergency Management Agency, don't believe it.

"There's no such thing as FEMA certification," she said. "FEMA does not certify or endorse any contractors."

Know that contractors, not homeowners, are required to provide the necessary building permits, Harris said. If a contractor tries to make you responsible for the permit, find another contractor.

Also beware of a contractor who "offers you a discount for finding other customers, has material left over from a previous job or suggests you borrow from a particular lender," she said.

When it comes to hiring a contractor, the experts provided a list of things to remember:

- Get more than one estimate. If the contractor pressures you to sign the contract right away or to pay for the full job up front, seek another contractor. "You should give no more than 30 percent down payment up front," Harris said.

- Get everything in writing.

"Cost, work to be done, time schedules, guarantees, payment schedule and other explanations should be detailed," Cavanagh said. "Get and keep copies of everything you sign."

- Demand and check references.

- Never sign a contract before all the blanks have been filled in. You could find yourself responsible for unwanted repairs and unacceptable terms.

- Never pay in full or sign a completion certificate before the work is finished.

Be aware of the legalities of signing a contract for work done on your homestead, Cavanagh said. Any such contract must have the following warning next to the space for your signature:

"Important notice: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights to your home. Know your rights and duties under the law."

In other words, she said, "If you sign a contract containing the language quoted above and you fail to make the payments, the company can take away your home. ... If you have any questions or doubts, consult an attorney before you sign the contract."

Harris reminded property owners to make sure the paperwork is done: Before you have any work done on your home – whether you do it yourself or hire a professional to do it for you – contact the local building inspector to find out what permits are necessary for your job.

For more information, Harris suggested, check the following Web sites:

- Texas Extension Disaster Education Network: http://texashelp.tamu.edu/.

- Better Business Bureau: http://www.bbb.com/alerts/article.asp?ID=582;

- Don Vandervort's home tips: http://www.hometips.com/content/hiringcontractors.html;

- Insurance Information Institute: http://www.iii.org/prepare/home/.

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